Post on 08-Feb-2016
description
Chapter 14. Money, Banking, and the Federal Reserve
Link to syllabus
Chapter 17 is an extension of this material, focusing on how incomplete regulation led to the financial crisis starting in 2007.We won’t have time to address this directly.
Monetary Aggregates, 2011. Fig. 14-1, p. 416.
M2 is much bigger than M1.
A Massachusetts local currency gets international attentionDutch nonprofit provides $500,000 grant to start loan program
for increasingly popular BerkShares
How Banks Create Money. Table 14-1, p. 423.New Loans Total(this Newstage) Loans
900 900
810 1,710
Fourth stage 729 2,629 3,439 729 2 ,439
(Required reserve ratio is 0.10)
The Monetary Base and the Money Supply. Fig. 14-5 p. 425
The Effect of Bank Runs, 1929-33. Table 14-2, p. 426
Very bad for banks, and the rest of us.
The Federal Reserve System. Fig. 14-6, p. 428.
Yellen to Back Stimulus Plan in Remarks to Senators
Janet L. Yellen, President Obama’s choice to lead the Federal Reserve for the next four years, plans to tell senators at her confirmation hearing on Thursday that continuing the Fed’s enormous stimulus campaign is the best way to revive the economy and hasten the program’s end. Ms. Yellen’s prepared remarks, as expected, amount to an affirmation of the Fed’s current course, which she has helped create over the last three years as a crucial supporter of the current chairman, Ben S. Bernanke.
(different text). Reserve Requirements 2006.
OMC Meeting (early 2012?)
Open Market Committee Seating
RollerCoaster joke
GreenspanJoke
Greenspan pictures
Fan of Benny Goodman
A member of AynRand’s “collective”
Greenspan and Paul Volcker, his
predecessor
Close, but no cigar
Greenspan viewed by cartoonists
Inscrutable Alan
The Federal Reserves Assets and Liabilities. Fig. 14-7 p. 398
Won’t be covered on exams in 201
Open Market Operations by the Fed. Fig. 14-8, p. 430
Fed buys bonds Fed sells bonds
The Fed’s Response to the Current Crisis. Fig. 14-9 p. 433
The TED Spread. Figure 14-10, p. 439